Regional Management to pay back $25.8 million mezzanine loan

By Marisa Wong

Madison, Wis., May 16 - Regional Management Corp. plans to repay $25.8 million of mezzanine financing in full using proceeds from a stock offering, according to an S-1 filed Monday with the Securities and Exchange Commission.

The company received the mezzanine loan from a sponsor and three individual owners in August 2010.

The mezzanine debt, which matures on Oct. 25, 2013, accrues interest at 15.25% per year, of which 2% is payable in kind at the option of the company.

The debt is secured by a junior lien on some of the company's assets and is subordinated to its senior revolving credit facility.

Proceeds from the debt were used to retire an equal amount of mezzanine debt owed to an unrelated lender.

The consumer finance company is based in Greenville, S.C.

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